Contributory role of innovative capabilities in Malaysian small and medium enterprises performance

Despite a growing body of literature focusing on business performance enhanced by innovation capabilities, empirical research examining its impact in Malaysia remains scarce. Adopting the view that monitoring and analysing business performance through innovation is necessary for strategic planning and business survival. This study surveyed 124 businesses in peninsular Malaysia via two-stage e-mail and telephone calls, supplemented by survey questionnaires. The findings indicate that SMEs should prioritise strategic planning, marketing innovation, and learning capability to improve business performance, particularly in Malaysia's manufacturing and export sectors. While this study makes no claim to be exhaustive, it demonstrates that understanding of the relationship between innovation capabilities and business performance is incomplete and that this area of research warrants further examination. Nevertheless, the discovery contributes to the body of knowledge by demonstrating how innovative strategic planning, marketing, and learning capabilities can enhance successful business performance.